In the past years, supply chains were managed using decentralized systems, where each function, like procurement, shipping, and customer service, operated independently. In this environment, businesses struggle to maintain control over critical aspects such as data, revenue, productivity, profitability, and other key performance indicators.
Thanks to modern technology, companies are progressively shifting towards the employment of centralized technology platforms, in other words an ecosystem-first approach where all aspects of the supply chain are integrated into a unified system. This perspective enhances visibility and communication across different departments, leading to a more holistic view of business operations. In this sense, processes are coordinated better and supply chain dynamics are traceable. This allows retailers to be more aware of market demand to plan more impactful strategies.
What is supply chain convergence?
Supply chain convergence is achieved thanks to centralized cloud-based systems designed to enhance transparency, revenue growth, and strengthen vital relationships within the business ecosystem by providing real-time insights into the entire supply chain to better adapt to changing market demands. By employing tools like machine learning and artificial intelligence to automate processes, businesses improve efficiency of their operations, decision-making, and increase transparency of operations.
Siloed data is an obstacle
When supply chain data is managed separately in ‘siloes’, businesses are incapable of effectively monitoring their incoming and outgoing shipments, a situation which leads to incorrect production scheduling, inadequate routing choices, delays in delivery, and poor visibility for customers. These problems typically result in high costs and a bad customer experience.
Profitability is connected to visibility
Accurate cost analysis depends on visibility. When financial information is isolated, businesses are unable to monitor expenses, such as cost of goods, shipping and transportation. This makes it impossible to understand immediately where costs can be lowered and if too much unnecessary money is spent for certain operations.
Inventory management
A lack of real-time insights into inventory levels, demand, and lead times causes businesses to order excess stock, resulting in excessive warehousing costs, or insufficient stock, which can result in lost sales, inability to adapt to market demand and customer dissatisfaction.
Choose partners with the right technology and integration capabilities
Selecting the right partners for your logistics operations can help to achieve all benefits of supply chain convergence — data visibility and traceability across all departments. eLogy’s warehouse management system (WMS) streamlines warehouse and fulfillment operations, from storage to shipping, creating an ecosystem where all supply chain activities are automated and traceable. This technology tracks data accurately to allow retailers to understand performance of the different logistics departments, improvement opportunities and, ultimately, to offer customers a high quality shopping experience.
Don’t let lack of transparency limit your company’s growth potential!
